hazellend
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Post by hazellend on Sept 30, 2019 20:57:01 GMT
A very good article. I will never stop trying to help fellow deluded/inexperienced investors discover the benefits of passive index investing. Only one or two funds required, and you will beat almost all the active investors. www.whitecoatinvestor.com/individual-stocks-dumb/ |
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sd2
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Post by sd2 on Oct 2, 2019 19:33:52 GMT
Rubbish theres plenty of investment managers who beat the market.
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hazellend
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Post by hazellend on Oct 2, 2019 19:40:12 GMT
Rubbish theres plenty of investment managers who beat the market. Nope. Over a 10 year period maybe 5 - 10% manage it.
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Post by Ace on Oct 2, 2019 19:50:27 GMT
Rubbish theres plenty of investment managers who beat the market. Nope. Over a 10 year period maybe 5 - 10% manage it. And those that do aren't consistent, so picking one is pure luck.
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travolta
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Post by travolta on Oct 2, 2019 19:56:23 GMT
I live off my investments. Some good, some dogs . What's to do ? Just spend your capital till its gone? I think I might take up senile crime, rob post offices and spend winters Inside . Seriously folks, should one totally avoid Stocks and Shares for fear of being thought stupid.
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Post by bracknellboy on Oct 2, 2019 19:56:45 GMT
Nope. Over a 10 year period maybe 5 - 10% manage it. And those that do aren't consistent, so picking one is pure luck. sorry, but that simply isn't true. One example is Neil Woodford, who has proven to be a consistent high performer over an extended period of time.
Oops.
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Post by bracknellboy on Oct 2, 2019 19:59:30 GMT
I live off my investments. Some good, some dogs . What's to do ? Just spend your capital till its gone? I think I might take up senile crime, rob post offices and spend winters Inside . Seriously folks, should one totally avoid Stocks and Shares for fear of being thought stupid. I'm assuming this is simply a continuation of the "passive" versus "active" fund manager / individual self-select discussion. That is very different from saying you shouldn't invest in S&S.
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hazellend
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Post by hazellend on Oct 2, 2019 20:49:53 GMT
I believe equities are the best way for people to save and invest for the future. Everybody who is investing for their future should have equities as their main holding and some gov bonds/cash if you feel the need to smooth the volatile ride.
Just don’t try and pick stocks/sectors or time the market.
If fears of a crash are holding you back, this means you have a lower tolerance for risk and should have a portfolio something like 60 % global equities : 40% global bonds
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macq
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Post by macq on Oct 2, 2019 21:32:33 GMT
there could be a point to make that in picking a global tracker of 3000 or 4000 stocks you are in a way doing individual stock picking of a form without even realising it.As the majority in percentage terms of the fund will be made up of about 100 -200 companies i would guess (the top 10 normally accounts for about 20% of the portfolio) with everything else being a micro percentage
It probably explains why if you compere something like the cheapest version of the L&G Global 100 (the i class i believe) and something like the Fidelity world index fund,but any others would do you find they are nearly always the same in performance or the L&G sometimes a fraction better.While the fund managers push index funds as owning the world and in a sense you do - the world and hence the index/fund looks like its is being driven by a small part of that world.But it sounds safer and a better selling point to make you think you own thousands of stocks
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Post by Ace on Oct 2, 2019 21:54:39 GMT
No-one is saying that a global tracker is a perfect way to invest, it's just that it's proven, on average, and in the long run, to be more profitable that paying a so-called expert to do it.
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macq
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Post by macq on Oct 2, 2019 22:18:38 GMT
not if you pick the right fund  but seriously i have both passive and active depending on the account i.e my company pension or ISA etc but i have been in active funds mainly IT's for over 30 years and even now i would be surprised if many are being or have been beaten by an index fund and see no reason to change now.But fully admit when looking at new funds for my pension etc i will look at ETF's or index fund (i.e the L&G fund i mentioned in a post) There does also tend to be the idea of saying you can just leave a tracker to do its thing which is true but part of investing active is you need to be active as well not only the manager.Would agree that many of the generic or closet trackers are duff funds and should not even be invested in but are pushed by Banks/BS/IFA and pension companies and invested in without much thought or DD so you get what your given which is not always great |
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iRobot
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Post by iRobot on Oct 3, 2019 8:19:50 GMT
Why Talking About Individual Stocks (and Sectors) Makes You ... " Look Dumb" Couldn't resist the click-bait thread title. Needed closure. 
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macq
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Post by macq on Oct 3, 2019 9:22:19 GMT
But for context - on any investing forum you could probably replace the word stocks in the above title and replace with P2P to catch all the naysayers |
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daveb
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Post by daveb on Oct 3, 2019 18:02:54 GMT
I think it makes a lot of sense for trackers to be most of your S&S investments, but I doubt if they are the best way of buying small companies, and an actively managed investment trust for these makes some sense
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macq
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Post by macq on Oct 4, 2019 7:28:14 GMT
In the spirit of the thread title -there are a couple of articles over the last couple of days on the Monevator site One of the more popular passive investing blogs.One is the start of a Q&A video with Lars Kroijer who seems to be a bit of a hero to some in the passive/index camp and the other is a Ten years of passive investing retrospective
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but seriously i have both passive and active depending on the account i.e my company pension or ISA etc but i have been in active funds mainly IT's for over 30 years and even now i would be surprised if many are being or have been beaten by an index fund and see no reason to change now.But fully admit when looking at new funds for my pension etc i will look at ETF's or index fund (i.e the L&G fund i mentioned in a post)
